HIGHLIGHTS

NSEL failed to pay its investors in commodity pair contracts after 31 July 2013.

FTIL founder Jignesh Shah.

HIGHLIGHTS

Provisional attachment order would be issued against FTIL and NSEL.

Assets over Rs 1200 crore would get attached, sources said.

NSEL failed to pay its investors in commodity pair contracts after 31 July 2013.

Due to Ganesh Visarjan event in Mumbai, the enforcement directorate (ED) were not able to complete the attachment process against Financial Technologies of India Ltd (FTIL). But Friday is a hectic day for the agency, as the officials have to wrap the attachment proceedings, before the weekend starts.

Sources confirm Indiatoday.in that the agency is likely to issue a provisional attachment order against FTIL (renamed 63 Moons) and National Spot Exchange Ltd, where assets over Rs 1200 crore would get attached.

"The legal proceedings for the attachment have been completed. It's just a matter of time that the provisional attachment order under sub-section (1) of Section 5 of the Prevention of Money Laundering Act, 2002, would be issued to NSEL and FTIL via post, any time from now. It could either by Friday evening or in next two days", the source said.

The list includes both movable and immovable properties of FTIL. "The total value of assets is around Rs 1253 crore, which includes some debt funds, growth funds, income funds and so on", the source said.

EOW OF MUMBAI POLICE EXPECTING NOTIFICATION

Interestingly, the Economic Offence Wing (EOW) of Mumbai Police is also expecting a notification, within next 36 hours, to attach the assets belong to FTIL under the Maharashtra Protection of Interest of Depositors (MPID) Act, worth Rs 2000 crore.

On 20th July, Mumbai Police had secured the company's Andheri office, its cash deposits, bonds and mutual funds. As per the process, security the property is the first step towards its attachment, which would be subsequently liquidated by the competent court and proceeds would be given to the investors.

The NSEL fraud surfaced in July 2013 after the spot exchange was found offering futures contracts. It was a Ponzi scheme that came out to light after the NSEL failed to pay its investors in commodity pair contracts after 31 July 2013. Around 13000 investors from India lost about Rs 5,600 crore when the fraud was discovered and it was found that NSEL had neither the money nor the stocks to pay them back.

ED registered a criminal case under the Prevention of Money Laundering Act (PMLA) in 2013 to probe the case, along with EOW. On 12 July, ED arrested FTIL founder Shah (now on bail) on charges of money laundering and for allegedly not cooperating with investigations.

When asked, a spokesperson for FTIL said the company has not received any attachment order from the agency, till now.